Less than a month after the Securities and Exchange Commission rejected their applications for non-transparent actively managed exchange traded fund BlackRock (NYSE: BLK) and Precidian pulled those applications knowing it is unlikely the funds will be approved.
The companies notified the SEC of their decisions on Friday, according to Bloomberg.
On Oct. 22, the SEC rejected applications for non-transparent actively managed exchange traded funds by Precidian ETFs Trust and Spruce ETF Trust, a unit of BlackRock.
The SEC had previously required all ETFs, active and passive, to disclose holdings on a daily basis, which has dissuaded some active managers from launching an ETF and revealing their secret sauce to potential front runners. [SEC Rejects Two Active Non-Transparent Applications]
However, earlier this month, Eaton Vance’s (NYSE: EV) Eaton Vance Asset Management gained SEC approval for exchange-traded managed funds (ETMFs), a type of exchange traded product that does not disclose its holdings on a daily basis as most passively managed ETFs do.